Terms of Trade Disturbances, Real Exchange Rates, and Welfare: The Role of Capital Controls and Labor Market Distortions
Sebastian Edwards and
Jonathan Ostry
Oxford Economic Papers, 1992, vol. 44, issue 1, 20-34
Abstract:
Many arguments in favor of maintaining capital controls within the European Community have not paid sufficient attention to the welfare consequences of this type of intervention. The authors' paper provides a simple choice-theoretic framework in which the welfare effects of capital controls can be assessed. First, they compare the welfare effects of terms of trade shocks in economies with and without capital controls. Second, the authors inquire into the nature of second best arguments for maintaining capital controls, given that other distortions (notably in the labor market) will remain after the European single market is in place in 1992. Copyright 1992 by Royal Economic Society.
Date: 1992
References: Add references at CitEc
Citations: View citations in EconPapers (15)
Downloads: (external link)
http://links.jstor.org/sici?sici=0030-7653%2819920 ... 0.CO%3B2-8&origin=bc full text (application/pdf)
Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.
Related works:
Working Paper: Terms of Trade Disturbances, Real Exchange Rates and Welfare: The Role of Capital Controls and Labor Market Distortions (1989) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:44:y:1992:i:1:p:20-34
Ordering information: This journal article can be ordered from
https://academic.oup.com/journals
Access Statistics for this article
Oxford Economic Papers is currently edited by James Forder and Francis J. Teal
More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().